This study examined the impact of business strategy on the organizational performance of Small-Medium Scale Enterprises (SMEs) in the manufacturing sector of Ghana. Whereas some SMEs are aware of the extent to which strategy can impact on their businesses, not much has been studied to identify the specific strategies which can be used to improve the performance of the SMEs. The study made use of questionnaires which were adminstered to 100 respondents who were randomly drawn from 10 SMEs. The performance indices were derived from a time series data from 2008 to 2013 on sales, profits before tax and labour size. Regression and analysis of variance (ANOVA) were run to examine the relationship between strategy and organizational performance. It was found that, business strategy statistically and significantly impacted on organizational. Again, cost leadership significantly influenced organizational behaviour but differentiation and focus strategies did not. The study recommends that the SMEs should strategic enough and also take advantage of cost leadership to enhance growth and induce greater organizational performance.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Theoretical Framework and Hypothesis
- Literature Review
- Defining strategy
- Generic Competitive Strategies and SMEs in Ghana.
- Strategy and Performance of SMES
- Methodology
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to examine the impact of business strategy on the organizational performance of Small-Medium Scale Enterprises (SMEs) in the manufacturing sector of Ghana. The research explores how specific strategies influence the performance of these businesses and investigates the relationship between strategy and organizational performance indicators such as sales, profits, and labor size.
- The impact of business strategy on SME organizational performance in Ghana's manufacturing sector.
- The effectiveness of generic competitive strategies (cost leadership, differentiation, and focus) in improving SME performance.
- The influence of cost leadership on organizational behavior and performance.
- The challenges faced by SMEs in Ghana, particularly their reliance on imported goods and consumer preferences.
- The role of strategy in achieving competitive advantage and sustainable performance for SMEs.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This section introduces the study, highlighting the importance of business strategy in the context of globalization and intense market competition. It emphasizes the need for SMEs to adopt strategic approaches to enhance their performance and achieve sustainable growth.
Theoretical Framework and Hypothesis: This section lays out the theoretical framework underpinning the study, drawing on existing research that links business strategy to organizational performance. It also presents the hypotheses that will be tested throughout the research.
Literature Review: This section delves into the existing literature on business strategy, examining various definitions and perspectives. It explores the application of generic competitive strategies (cost leadership, differentiation, and focus) to SMEs in Ghana, discussing the challenges and opportunities associated with each approach.
Methodology: This section outlines the research methodology employed in the study, including the data collection and analysis techniques. It describes the sampling methods used to select SMEs and the performance indicators chosen to measure organizational performance.
Schlüsselwörter (Keywords)
The study focuses on the impact of business strategy, particularly generic competitive strategies such as cost leadership, differentiation, and focus, on the organizational performance of Small and Medium-Scale Enterprises (SMEs) in the manufacturing sector of Ghana. Key themes include organizational performance, competitive advantage, and the challenges of operating in an emerging economy with consumer preferences for imported goods.
- Quote paper
- John Parker Yanney (Author), Kofi Annan Dennis (Author), Godwin K. Awuah (Author), 2014, The Effect of Business Strategy on Organizational Performance of Small-Medium Scale Enterprises in the Manufacturing Sector of Ghana, Munich, GRIN Verlag, https://www.grin.com/document/294536
